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Efficiency and productivity growth comparisons of European and U.S. Air carriers: A first look at the data

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  • David Good
  • M. Nadiri
  • Lars-Hendrik Röller
  • Robin Sickles

Abstract

In this paper we carry out technical efficiency and productivity growth comparisons among the four largest European carriers and eight of their American counterparts. The time period of our comparisons is 1976 through 1986. This is a particularly interesting period since it begins just after the informal steps toward deregulation in the United States and ends just prior to the introduction of the first wave of reforms by the Council of Ministers in Europe. We also identify the potential efficiency gains of the European liberalization by comparing efficiency differences between the two carrier groups. The reductions in inefficiency describe the amount that inputs can be decreased without altering output. Copyright Kluwer Academic Publishers 1993

Suggested Citation

  • David Good & M. Nadiri & Lars-Hendrik Röller & Robin Sickles, 1993. "Efficiency and productivity growth comparisons of European and U.S. Air carriers: A first look at the data," Journal of Productivity Analysis, Springer, vol. 4(1), pages 115-125, June.
    • Handle: RePEc:kap:jproda:v:4:y:1993:i:1:p:115-125
    DOI: 10.1007/BF01073469
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    References listed on IDEAS

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    1. Good, David H. & Rhodes, Edwardo L., 1991. "Productive Efficiency, Technological Change and the Competitiveness of U.S. Airlines in the Pacific Rim," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 31(2).
    2. Sickles, Robin C. & Good, David & Johnson, Richard L., 1986. "Allocative distortions and the regulatory transition of the U.S. airline industry," Journal of Econometrics, Elsevier, vol. 33(1-2), pages 143-163.
    3. Cornwell, Christopher & Schmidt, Peter & Sickles, Robin C., 1990. "Production frontiers with cross-sectional and time-series variation in efficiency levels," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 185-200.
    4. Douglas W. Caves & Laurits R. Christensen & Michael W. Tretheway, 1984. "Economies of Density versus Economies of Scale: Why Trunk and Local Service Airline Costs Differ," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 471-489, Winter.
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